Constellation Energy Secures 20-Year Nuclear Deal with Google

Constellation Energy Corp (CEG) has secured a landmark 20-year nuclear power deal with Alphabet Inc. (GOOGL), boosting its long-term outlook. The agreement includes 890 MW of upgraded nuclear capacity and 2,700 MW from existing plants, totaling 3,590 MW of power supply in the PJM market. Constellation will invest over $4.3 billion, with the first upgraded capacity expected in 2028.

The deal significantly improves revenue visibility for Constellation, locking in a major customer for decades. It validates premium pricing for reliable nuclear power and supports upgrades to existing plants, which are faster than building new reactors. The agreement follows a similar deal with Amazon, suggesting that hyperscalers are increasingly competing for dependable electricity.

While the stock is up 8.74% in pre-market trading at $291.00 as of Oct 6, 2026, valuation concerns remain. The stock is below its 52-week high of $412.70, and fair value is estimated at $247.63, implying limited upside. Near-term earnings benefits may be limited, as the first incremental capacity is not expected until 2028. Risks include construction costs, regulatory approvals, and power-market pricing.

The Google agreement strengthens Constellation's multi-year earnings visibility. The key question now is whether the stock has moved ahead of the expected cash flows. The outlook is strategically bullish but tactically sensitive to valuation.